Interview w/Edward Castronova

scubacuda writes "/.ers interested in the recent editorial on real $ in MMORPGs might also be interested in a GrepLaw interview I just conducted with Edward Castranova (expert witness in the recent Black Hat Hacker Court) about how his work on synthetic economies affects larger law and policy issues on the Internet. Ted has some interesting thoughts, particularly how online game-based economics (Star Wars Galaxies, EverQuest, Lineage, etc.) will eventually serve as the bases for "real governments." Should mainstream economics journals take his work on gender and virtual economies seriously, Ted promises to eat his virtual hat."

Comments

None have worked

[mao che minh]

After three years of playing different MMOGs, if there is any one thing that I am certain of it is that all virtual economies are faulted by a common flaw: programs and systems have flaws that can and will be exploited, and that the artificial adjustments demanded to repair them never work, because at the very moment an artificial adjustment is required the naturalality of the economy ceases.

For an example, just look at the dismal failure that each "fix" was to Ultima Online's economy. As soon as the developers started "fixing" things, the economy ceased being a natural evolution, and instead a predictable system that the cheaters began to utilize. Anyone that did not make full use of each new exploit could not compete. Everyone left, and all UO is left with is about thirty or so thousand people engaged in an never ending cycle of beating the system. If Origin had just started booting the cheaters than they would still have a viable product.

Re:None have worked

[Uncle Ira]

That's a good point, but don't overlook the fact that real-wold economies also have flaws that can and will be exploited. Anyone that has made use of a tax loophole or laundered money is filling the role of the "cheaters" in your example.

Taking your example further, you could say that our "developers" (economists and policymakers) are making changes to the system as well as "booting" the most flagrant cheaters- that's what prison sentences are for.